Considering Chapter 13 Bankruptcy For Debt Problems
Accumulating debts is one of the most common problems that people have during adulthood. Getting into such a situation is easy, but getting out of it can seem as though it is impossible in some cases. Another thing that makes going into debt difficult to cope with is the stress that creditors cause when they constantly demand money. You can actually take control of the situation by hiring an attorney and filing for bankruptcy. In this article, you will find out if Chapter 13 bankruptcy is ideal for getting out of your debt situation so you can have more peace in your life.
How Steady is Your Monthly Income?
Chapter 13 bankruptcy is one of several types that can be filed against debts. You might want to file for Chapter 13 bankruptcy if your income is steady and you have been at your job for a long time. Basically, you will not be forgiven for all or most of your debts as with other types of bankruptcy, but you will have the opportunity to pay them off in an easier manner. Discuss your income with an attorney and he or she will let you know if the monthly amount is sufficient enough for paying off your debts under Chapter 13 bankruptcy. If you don't make much money, the attorney might suggest settling your debts via a different type of bankruptcy.
Do You Need Lower Payments?
If lower payments to creditors is one of the things that you need to bring your debt situation under control, Chapter 13 bankruptcy might be ideal. Not only can you be granted lower payments, but also a longer period of time to pay the debts off in full. An attorney is helpful because he or she can assist with coming up with the most ideal repayment plan for your situation. The repayment plan must be presented to a judge, as he or she has the final say in regards to approving it or not. Your creditors will also have the opportunity to review the repayment plan.
Is Your House at Risk for Foreclosure?
Have you fallen far behind on making mortgage payments and not your house is in the foreclosure process? By filing for Chapter 13 bankruptcy, you will enjoy the benefit of bringing your house out of foreclosure. Basically, your mortgage payments can be reduced and included in the repayment plan that your attorney drafts up. Just keep in mind that the reduced payments will have to be paid on time if you expect to keep your house out of foreclosure.
Contact a legal team, like Dionisio law, for more help.